The observation letter was issued by SEBI on June 10 itself. The draft IPO related documents were approved on June 20.Ola will raise a total of Rs 7,250 crore from the market through IPO.
New Delhi. Ola’s vehicle, which was standing on SEBI’s red signal for a long time, has finally got the green signal. The electric two-wheeler manufacturing company is going to enter the stock market soon. Market regulator SEBI has given permission to the company to bring IPO and raise money from the market. Investors were also waiting for this IPO for a long time. SEBI has given this approval on June 20 and its information has also been updated on the market regulator’s website. However, the observation letter was issued on June 10 itself.
According to the information available on the website of the Securities and Exchange Board of India (SEBI), the draft documents related to Ola’s IPO have been approved on June 20. This means that now this company can move forward towards bringing IPO. In the proposed IPO of Ola Electric, apart from issuing new shares worth Rs 5,500 crore, shares worth Rs 1,750 crore held by promoters and investors will also be launched in the market. This means that the company will raise a total of Rs 7,250 crore from the market.
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How many shares will Ola launch in the market
Bangalore-based Ola Electric introduced its first EV two-wheeler model in August 2021. Apart from manufacturing electric two-wheelers, it also manufactures battery packs and motors. The company had appointed Kotak Mahindra Capital and Goldman Sachs for its IPO. The company’s founder Bhavish Aggarwal has planned to launch 4.73 crore shares in the market. Apart from this, AlphaWave, Alpine, DIG Investment, Matrix and other investors who are among the initial investors of the company will also sell their 4.78 crore shares in the market through OFS.
Where will the company spend the money
According to the DRHP presented by the company, Ola will use the funds raised from the market to repay the debt, expand the company’s business and R&D. Out of this, Rs 1,226 crore will be used for capital expenditure, while Rs 800 crore will be used to repay the debt. The maximum amount of Rs 1,600 crore will be spent on research and Rs 350 crore will be spent on other growth.
Long term planning of the company
Ola has received approval from SEBI to launch an IPO at a time when the company is preparing to launch an electric car after the Ola scooter. The company has also started discussions with investment banks regarding the IPO. Therefore, it is being speculated that the IPO can be launched in the market soon. This can also prove to be a good deal for investors, because the fundamentals of the company are strong and the growth plan also looks good.
Tags: Business news, IPO, Ola Cab, Share market
FIRST PUBLISHED : June 20, 2024, 18:55 IST